India’s largest conglomerates are stepping into the rare earths sector as the country seeks to reduce its dependence on China for critical minerals and high-performance magnets used in electric vehicles, electronics, defence systems and renewable energy technologies.
According to reports, major business groups including Reliance Industries, the Adani Group and Vedanta are evaluating opportunities across the rare earth value chain, from mineral processing to magnet manufacturing and advanced materials production.
The push comes amid growing concerns over global supply-chain vulnerabilities. China currently dominates the global rare earth industry, controlling a significant share of mining, processing and magnet manufacturing capacity, making many countries heavily dependent on Chinese exports.
India possesses substantial rare earth reserves but has historically lacked large-scale processing and downstream manufacturing capabilities. Policymakers are now encouraging private-sector participation to build domestic capacity and strengthen supply-chain resilience.
Industry experts believe local production of rare earth magnets could be particularly important for India’s electric vehicle ambitions, renewable energy expansion and defence modernization efforts. Permanent magnets made from rare earth elements are critical components in EV motors, wind turbines, missiles and advanced electronics.
The involvement of major industrial groups is expected to accelerate investment, technology partnerships and infrastructure development in the sector. Analysts say a stronger domestic ecosystem could help India reduce import dependence while creating new opportunities in advanced manufacturing.
The initiative is part of a broader strategy to secure access to critical minerals and position India as a key player in emerging global supply chains for clean energy, electronics and strategic technologies.
